Select Medical stockholders approve buyout by insider-led consortium

Select Medical Holdings Corporation (NYSE: SEM) said its stockholders voted to approve a merger agreement with an entity affiliated with a consortium led by Executive Chairman Robert A. Ortenzio, Senior Executive Vice President Martin F. Jackson, and private equity firm Welsh, Carson, Anderson & Stowe (WCAS) at a special meeting held June 26, 2026.

Approximately 82.54% of Select Medical's outstanding shares were represented at the special meeting. The merger was approved by over 79.88% of outstanding shares and by over 76.64% of shares held by stockholders unaffiliated with the consortium.

The closing of the merger remains subject to conditions outlined in the merger agreement and described in a Definitive Proxy Statement filed with the U.S. Securities and Exchange Commission on May 19, 2026. Select Medical said it expects the merger to close in mid-2026.

J.P. Morgan and Wells Fargo are serving as joint lead arrangers and bookrunners for the consortium's debt financing. Goldman Sachs is financial advisor and Skadden, Arps, Slate, Meagher & Flom LLP is legal counsel to the special committee of independent directors. Wells Fargo and J.P. Morgan are also financial advisors to the consortium, with Cravath, Swaine & Moore LLP as its legal counsel. Barclays is advising WCAS, with Ropes & Gray LLP as its legal counsel. Dechert LLP is serving as legal counsel to Select Medical.

As of March 31, 2026, Select Medical operated 103 critical illness recovery hospitals across 28 states, 41 rehabilitation hospitals in 15 states, and 1,912 outpatient rehabilitation clinics in 37 states and the District of Columbia.

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